Posted by Editoron August 17, 2017in Business|Comments Off on NHS Receives $39M to Provide Mortgage Lending to Underserved Communities

Neighborhood Housing Services of Chicago (NHS) raised $39 million for its Loan Pool Program to provide mortgage lending to households throughout the city of Chicago, south suburban Cook County and Kane County. Fifteen local financial institutions invested in the NHS Loan Pool, which will allow NHS lending affiliate, Neighborhood Lending Services, Inc. (NLS), to originate affordable fixed-rate loans through March 2020. NLS lends to new and existing homeowners with a particular focus on economically distressed neighborhoods on the south and west sides of Chicago. “We are honored to offer this innovative structure to help financial institutions meet Community Reinvestment Act (CRA) requirements in communities where the demand for credit cannot be met,” said NHS President Kristin Faust. “We know how vital homeownership is to strengthening households and communities and through this unique partnership we will continue to build stronger neighborhoods, one home at a time.” In addition, many 1-4 unit properties suffer from deferred maintenance and considerable deterioration resulting in the need for significant rehabilitation to be brought up to code and made habitable. NLS is able to finance both the purchase and rehabilitation of these properties, allowing borrowers to build wealth, enhance the physical condition of the neighborhood, and ultimately help to attract additional private investment to the community. This year, 2017, marks the sixth time in 15 years that NHS has embarked on the Loan Pool capital raise resulting in more than $244 million in residential mortgages loaned. It is estimated that the $39 million raised will support financing for an additional 200 new homebuyers and another 100 homeowners will be able to improve their existing homes.